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Capital Economics

The leading macroeconomic research consultancy

Commodities Update

Commodities Update

Sugar price to drop another 20% in 2012

Brazil, the world’s largest sugar producer and exporter, has revised down its sugar production estimate for 2011/12 due to bad weather. However, ample global stockpiles and improved harvests in other countries should more than compensate for this loss. We therefore expect prices to drop further in the coming months and to end next year around 20% lower than current levels.

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